NYC or Out of State?

[Daniel Pichardo]

I am trying to buy my first investment property. I don’t own a property yet but have been doing tons of research. BP has helped so much. However, I’m struggling to make a decision as to where to start? I live in NYC but real estate is very expensive here and don’t feel comfortable starting with such high value property. What are other NYC investors doing? What has worked? Please help.

[Brian Adzadi]

@Daniel Pichardo

Your best bet is to go out of state. Sorry to say. The market is so saturated with investors with deeper pockets than you, me or half of the Biggerpockets bloggers put together. I am seeing Single Family Houses being bulldozed down and multi-story condos replacing it.  What chance do you have?

I know there will be other members here saying "Oh don't say that, there is still places people can invest in NYC." Its bogus, trust me. I have lived in NYC for 24 years and trust me, Joe Schmoes like us will not succeed in this city unless we are rubbing elbows with heavy hitters. Why would you even want to invest in such a tenant friendly city anyway?

I looked past NYC or NJ for living and investing and went to Pennsylvania. Best decision I ever made. Housing stock is so much cheaper and the ROI is so much better.

Dude, start looking at Pennsylvania or the Midwest: Ohio, Indiana, Illinois or Michigan. If you want a decent cash flow and good ROI, these are the places you want to be.